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LCPOA Dues Increase

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This is an example of how the HOA spends the members' money irresponsibly. 
ABC7 La News, April 23, 2026

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Alert
Proposed $4.8M+ Road/Culver Costs
Members Demand Financial Transparency & Multiple Bids

BOARD  MAJORITY 

President Roy Paulson, VP David Boyd, Secretary/Treasurer Paul Gaarenstroom

VOTED TO RAISE YOUR DUES

WITHOUT  CAUSE or JUSTIFICATION

VOICE YOUR CONCERNS TO LCPOA PROPERTY MANAGEMENT 

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Road Committee Chair stated

Roads: $2.5–$3.2 Million

Culverts: $1.6 Million

On March 5, 2026 Open Session meeting, stted their intend to make a dues increase is "mandatory" to cover projected 5-year road costs:

WHY WE NEED A FORENSIC AUDIT – Quotes taken from the Notice of Consideration of Annual Dues Increase Presented by LCPOA President Roy Paulson and LCPOA Treasurer Paul Gaarenstroom - Dated July 31,2026

 

  1. We need a Forensic Audit because: “Beginning in fiscal year 2023-2024 increased operational spending has meant a decrease in the amount that could be contributed to our Reserve Account.”

    1. Paulson & Gaarenstroom admit the board has overspent its’ operational budget for the last 3 years as quoted in their Notice of Consideration of Annual Dues Increase dated 7/31/2026.

    2. How can the board overspend its’ operational budget for the last 3 years when the board reported a 6-figure surplus less than a year ago?

    3. If the board has overspent their operational budget for the last 3 years where is the notification to the membership as required in the Davis-Stirling Act?

 

  1. We need a Forensic Audit because: “As of the July 2026 Board Meeting, our Finance Committee reported that we were 70.8% funded, with some vendor invoices still outstanding. The Board believes that a reserve funding percentage below 50% to be financially unhealthy.”

    1. The above quote was written on July 31st, 2026. What outstanding invoice will bring our dues from 70.8% funded to an unhealthy percentage below 50% to trigger a multi-year dues increase?

    2. The Board already knows the outstanding amount since all LCPOA expenditures require Board approval in Open Session. This is a large portion of our dues, not small expenditures and require disclosure per Davis-Stirling. 

 

  1. We need a Forensic Audit because: “The Reserve Study explains a way to get our reserves into the ‘Good’ category. Using a 10% increase in reserve member contributions for our next fiscal year, plus additional increases for each of the following years. As you can see, our reserves dip into the ‘Poor’ category for many years under this approach – even with the multi-year projected increase in dues.”

    1. The purpose of the Reserve Study is to ensure there are enough funds for major repair and replacement of our roads and culverts. A Reserve shortage is a RED FLAG. We need a Forensic Audit to determine what happened to learn and not make the same mistake again.

 

  1. We need a Forensic Audit because: “With regard to the member contribution side of the ledger, Director Boyd continues to present the direct and indirect costs associated with the ongoing lawsuits and threats. As of the July Board Meeting, he announced that these costs cumulatively over the past few years are in excess of $285,000.”

    1. The portion of our dues that should go toward reserves has been wasted on litigation. In less than a year our Operating Budget went from a 6-figure surplus to a required 20% dues increase which still is not enough to cover the shortfall.

  2. We need a Forensic Audit because: “Please be aware that it is a mathematical certainty that a 20% dues increase alone will not get us to adequate reserve funding in the long run.”

    1. It is irresponsible to throw more money without identifying the problem. Our board has misappropriated our reserve funding for years without notification required under Davis-Stirling.

 

. Disputed Dues Increase & Road Committee    Claims

Road Committee Chairman claims a dues increase will be mandatory, due to inflation and a lack of any increase since 2008.

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  • The Counter-Argument:

    • Low Overhead: Unlike other HOAs, LCPOA has no clubhouse, pools, or golf courses. The only major asset is the maintenance of our roads.  Yet,  the Board continues to spend money on many frivolous, unnecessary expenditures such as the illuminated horse crosswalk estimated in excess of $150k. 

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    • High PCI Score: The roads currently have a Pavement Condition Index (PCI) of 81% (Satisfactory/Excellent). There is no structural "emergency."

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    • Revenue Sufficiency: With $1.025 million currently in the association's general fund, the Board should gauge repair costs according to actual accounts receivable rather than pre-emptive dues increases.

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. Lack of Transparency in the $259,095 Legal Expenditure Fund

Director David Boyd announced a total legal expenditure of $259K. To date, the membership has not received a side-by-side breakdown of this legal cost. Litigation Committee Chair & Board Member David Boyd is absent from any education and has only limited experience with judicial matters, but now serves as Chair of the Litigation Committee. Our excessive legal expenditures must be managed with capable, skilled oversight.

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  • The Issue: Large "lump sum" reporting prevents members from seeing which cases are closed or now active, pending that continue to drain our reserves. 

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  • The Demand: A detailed report by filing date, service, case number & Plaintiff & Defendant names (e.g., Case A, Case B) to disclose legal fees spent per case, management "special billing" hours, and administrative costs for each case.

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​.  Misuse of Funds for Policy Changes (Drones & Business Interests)

 

President Roy Paulson has proposed spending member funds on an attorney-drafted legal opinion, recently approved by the board majority regarding drone usage. Despite admitting that he has never witnessed the filmed content of the drone that he alleged was filming to count the horses in his own  barn.  It is no secret that Roy Paulson is operating a commercial horse boarding and training business in violation of our CC&Rs and Riverside County Zoning conditions by failing to obtain a CUP: Conditional Use Permit from Riverside County.

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  • The Issue: Evidence suggests this policy is being pursued to protect the President's private, unpermitted horse-training commercial business from being documented or photographed.

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  • The Conflict: Using HOA legal funds to draft policies that serve the personal interests of a Board member (to hide potential association & zoning code violations) appears to be a breach of fiduciary duty and considerable self-dealing for self-benefit.

 

. Verification of Video Recording Prohibitions

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The Board has claimed that "Insurance Policies" prohibit members from video recording meetings.

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  • The Inquiry: We demand to see the specific section of the LCPOA Insurance Policy that prohibits video recording. California law generally protects the right of members to record open sessions, and insurance carriers rarely, if ever, dictate bylaws.

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.Legal Spending (Vince Scarpino Case #CVSW2308875) Complaint for:

  1. Defamation

  2. Intentional Infliction of Emotional Distress

  3. Negligent Infliction of Emotional Distress

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At the March 03, 2026 Open Session meeting, Board member David Boyd announced a legal fee expenditure of $13,908.50 related to a lawsuit filed by member Vince Scarpino in Riverside Superior Court. It is a matter of record that this lawsuit was never served on the Association nor any of the named former & current Board Members: Richard DeAndero, Calvin Westra, and David Boyd.

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  • The Issue: Why is your Board or Litigation Committee approving legal fees to be generated for a lawsuit that was never legally served to the LCPOA?  Legal obligation begins only after the summons & complaint have been served. Many cases never reach service.

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  • Accruing legal fees before service is generally considered an unnecessary expense that primarily benefits the attorney's billing. Plaintiffs must serve all named defendants and file proof of service within 60 days of filing the complaint per California Rules of Court 3110(b).  This financial oversight appears to demonstrate that our Board & Litigation Committee is incompetent & irresponsible in managing our ongoing legal expenses. In cases of small or, in this particular case, no monetary damages, waiting is prudent & will save money.

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  • The Demand: The Board must provide a line-item billing statement showing exactly what legal work was performed for an unserved complaint. What exactly was achieved or accomplished by this $14K wasted legal expense? 

PROTECT OUR COMMUNITY

1. RISING DUES & HIDDEN SPENDING

  • The 20% Dues Hike: Treasurer Paul Gaastroom voted to raise dues by 20%, even though the Board admits it won't cover the upcoming $4.8 million budget for road and culvert repairs over the next 5 years.

  • The Missing Funds: With a $350,000+ surplus and a $2 million reserve fund—and no golf course or clubhouse to maintain—why are our fees still going up? Reserves also dropped from May 2025 $2.8M to March 2026 $1.9M while Reserved fund was pulled without proper board notification, violating California Civil Code § 5502.

  • Loophole Road Spending: The Board claims they don't need to put road repairs on the budget; instead, they announce repair budgets in open session just to pull money from reserves with no plan to pay it back.

  • EMWD Escrow: Did you know EMWD opened escrow for a lot in La Cresta to build a 60-foot tower?

2. LEGAL RISKS & LACK OF TRANSPARENCY

  • Spiraling Costs: Legal expenses are surging because the board majority ignores financial regulations and CC&Rs, attempting to change rules without member awareness.

  • Withheld Documents: Invoices and financial statements are kept off the website, while a sudden 5-year overhaul is rushed through for a community that was fine for 50+ years. 

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